The restaurant industry is flourishing, however, rising property and labor costs have created a need for automation. With 80% of restaurateurs turning to tech to help them run their business efficiently, why has the old way of doing things still stuck around? The answer? Only a handful of companies are offering tools for inventory, ordering, and scheduling. These platforms lack a fundamental customer understanding, that has led to expensive subscriptions, limited utility, lackluster design and the absence of integration across a variety of single-task software systems. As a result, pen and paper operations prevail among most if not all of these everyday operations. Human error is constant, resulting in over/under ordering, time-consuming processes, and mistakes in scheduling.
Suppliers rely on sales reps to communicate with accounts. Both bars and restaurants trust the sales reps to showcase a full view of the products their company has to offer, as well as communicate deals and specials that may help strengthen relationships while saving them money. This is not always the case as reps often forget deals and specials and establishments often forget to order items. In addition, up and coming brands struggle to advertise to their target market using traditional avenues and often struggle to on-board new accounts. What does this mean? Establishments are regularly over paying for products, while distribution and supply (brands) companies are missing out on ways to increase their sales due to lack of exposure. Lastly, we believe new brands are shut out of the market entirely because they aren't able to expeditiously scale and penetrate the monopolistic three tier system.
What do Google, Facebook, Snapchat, Tinder, Alibaba and Uber have in common, besides soaring market share? They are all platforms. Platform businesses generate value by using technology to facilitate exchanges between groups.
To the contrary, linear businesses generally grow by adding staff or physical assets (or both). But physical assets and employees don't scale well. Networks do. Platforms require much less capital expenditure to be successful at scale and eliminate the marginal cost of production by focusing on facilitating connections.
Uber doesn't own and operate a fleet of taxis, Alibaba doesn't own factories that produce the goods it makes available online, Google doesn't create the Web pages it indexes, and YouTube doesn't create the millions of videos it hosts. By focusing on creating an ecosystem that better connects Restaurants, Bars, Suppliers, and Distributors, KÉXY holds a distinct advantage over it's "product only" minded competitors.
- Excerpts taken from Modern Monopolies, 2016
- Tom Freston (Founding Executive of MTV)
Investment
Convertible Promissory Notes
Note converts to Class B Non-Voting Membership Units when the company raises $1,000,000 in a qualified equity financing.
Maturity Date: June 15, 2021
$5,000,000 Valuation Cap
20% Discount Rate
6% Annual Interest Rate*
*Annual Interest Rate subject to adjustment 10% bonus for StartEngine shareholders. See 10% Bonus below
Perks*
If you invest $1000 or more, you will receive a KÉXY pack including a KÉXY cap, t-shirt, and sweatshirt.
Attention Restaurant & Bar Owners: If you invest $3,500 or more, your restaurant or bar will receive a lifetime subscription to KÉXY Connect & Suite**.
* All perks occur after the offering is completed.
** Only one restaurant or bar, per investment
What is a Convertible Note?
A convertible note offers you the right to receive units in KEXY, LLC. The number of units you will receive in the future will be determined at the next equity round in which the Company raises at least $1,000,000 in qualified equity financing. The highest conversion price per share is set based on a $5,000,000 Valuation Cap or if less, then you will receive a 20% discount on the price the new investors are purchasing. You also receive 6% interest per year added to your investment. When the maturity date is reached, if the note has not converted then you are entitled to receive Class B Units equal to your investment and interest back at a price per security determined by dividing the Valuation Cap by the aggregate number of outstanding shares of the Company as of immediately prior (on a fully diluted basis), subject to discount rate, if applicable.
KÉXY's proprietary algorithms measure both prior and present product consumption, which over time will eliminate the need to do inventory.
Our technology was built for both Front and Back of the Houses and provides notification alerts when you are about to run out of a particular product. This key functionality makes ordering from your vendors as simple as clicking a button.
Our Green, Yellow, Red notification system will alert you when under pouring, over pouring, or possible theft is occurring, so that you can address it immediately.
Restaurants and bars can compare two or more distributors or suppliers based on their rating, pricing, overall experience, etc. A good supplier or distributor will have a respectable rating which will attract more customers to buy their goods.
Company | : | KÉXY, LLC |
Corporate Address | : | 1707 Burgundy Road, Encinitas, CA 92024 |
Offering Maximum | : | $107,000.00 |
Offering Minimum | : | $10,000.00 |
Minimum Investment Amount(per investor) | : | $250.00 |
Offering Type | : | Convertible Promissory Notes |
Security Name | : | Convertible Promissory Notes |
Type of Equity Converted into | : | Class B Non-Voting Membership Units |
Conversion Trigger | : | $1,000,000 |
Maturity Date | : | July 15, 2021 |
Valuation Cap | : | $5,000,000.00 |
Discount Rate | : | 20% |
Annual Interest Rate* | : | 6% |
*Annual Interest Rate subject to adjustment of 10% bonus for StartEngine shareholders. See 10% Bonus below
Perks*
* All perks occur after the offering is completed.
** Only one restaurant or bar, per investment
The 10% Bonus for StartEngine Shareholders
KÉXY, LLC will offer 10% additional bonus interest for all investments that are committed by StartEngine Crowdfunding Inc. shareholders who invested over $1,000 or made at least two investments in StartEngine's own offerings.
Eligible StartEngine shareholders will receive a 10% increase in the annual interest rate on Convertible Promissory Notes in this Offering . This means your annual interest rate will be 6.6% instead of 6%.
This 10% Bonus is only valid for one year from the time StartEngine Crowdfunding Inc. investors receive their countersigned StartEngine Crowdfunding Inc. subscription agreement, unless their eligibility period has been extended through additional subsequent investments in StartEngine's own offerings.
A crowdfunding investment involves risk. You should not invest any funds in this offering unless you can afford to lose your entire investment. In making an investment decision, investors must rely on their own examination of the issuer and the terms of the offering, including the merits and risks involved. These securities have not been recommended or approved by any federal or state securities commission or regulatory authority. Furthermore, these authorities have not passed upon the accuracy or adequacy of this document. The U.S. Securities and Exchange Commission does not pass upon the merits of any securities offered or the terms of the offering, nor does it pass upon the accuracy or completeness of any offering document or literature. These securities are offered under an exemption from registration; however, the U.S. Securities and Exchange Commission has not made an independent determination that these securities are exempt from registration.
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